City budget would increase 2.75%, raised by taxes

LACONIA — City Manager Kirk Beattie will present the initial city budget proposal, with an increase of 2.75% to be raised by taxes, for fiscal year 2026 at the Monday council meeting.

The meeting is set for 7 p.m. on Monday, April 28, at City Hall downtown.

According to the April 22 meeting minutes of the council’s Finance Subcommittee, Beattie noted the budget represents an overall increase of 2.75% to be raised by taxes. The school district tax is estimated at 3.7%, the statewide education tax at 5.4% and the county at 12.47%. 

It’s approximately $61.5 million to be collected by taxes for fiscal year 2026, a 4% increase from the $59 million in last year’s budget. 

Finance Director Glen Smith noted at the subcommittee meeting that, when the county was reevaluated, Laconia was found to be growing proportionally faster than any other municipality in Belknap, and that trend may continue as the State School property is developed. 

Beattie is looking for $321,000 in order to ensure the proposed budget is tax cap compliant, according to the meeting minutes. He’s waiting to hear back from municipal insurance providers and hopes to see savings of $200,000 there.

There won’t be any cuts to city personnel. 

The school district lost $1.2 million in state funding. The school board plans to use $1 million in reserve monies. District leaders estimate they may receive up to $6 million less in federal funding, and they’ve cut five positions from their payroll, but none were teaching positions. 

In other business, councilors will hold a public hearing regarding an amendment to the zoning ordinance for a specific parcel on Blueberry Lane, where a development group is seeking to build housing.

The zoning ordinance amendment would expand the Residential Apartment District to include 35 Blueberry Lane. The parcel currently abuts the district and has a nonresidential use which does not conform to the uses permitted in the residential district, according to a city staff report. 

The zoning amendment would allow that parcel, the current location of the Beane Conference Center, to be developed in accordance with the character of the neighborhood and the city’s master plan.

The majority of dwelling units along Blueberry Lane are in multi-family structures. The city’s master plan identifies a “pro-population growth land use strategy, with a focus on mid-market residential housing”. By expanding the zoning district to this parcel, the city will provide developers with the opportunity to implement the city’s land use strategy. 

The city’s Planning Board reviewed and approved this amendment at their meeting on April 1. 

And councilors will hold a public hearing regarding acceptance of a donation from Bank of New Hampshire to replace an existing flagpole at Veterans Square downtown.

Bank of New Hampshire offered to donate, install and maintain a new flagpole to replace the one located in the square. They’ve received a quote from High Flying Flag Co. in Greenland in the amount of $25,935 — $10,300 for the pole, $635 for shipping and handling, $10,000 for removal of the existing pole and new installation, and $5,000 for police detail.

There’s no cost to the city.